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A Leapmotor vehicle featuring range extension technology was showcased at the company’s headquarters in Hangzhou, China, on June 22, 2024.
Recent data indicates that in China, hybrid vehicles are gaining more traction among consumers compared to battery-only cars, even as the market sees a decline in traditional gasoline-powered vehicles.
Leading the charge in this hybrid trend is BYD, which reported sales of approximately 4.3 million passenger vehicles in 2024, as per a filing released on Wednesday. In a notable shift from the previous year, nearly 2.5 million of these vehicles were hybrids, reversing the 2023 situation where battery-only models slightly outpaced hybrids.
Tesla continues to maintain a strong position in the market, with projections indicating sales exceeding 600,000 battery-only vehicles in China for a consecutive year. According to calculations from data provided by the China Passenger Car Association, the company’s 2024 sales figures are expected to be disclosed on Thursday morning, U.S. time.
“While the growth of battery electric vehicles continues, we anticipate it may plateau,” observed Joe McCabe, president and CEO of AutoForecast Solutions. He further indicated that by 2031, there will still be a market for vehicles powered by internal combustion engines, including hybrids.
Li Auto, another major player, reported a record number of 500,508 vehicle deliveries for the previous year. The majority of Li Auto’s offerings are equipped with fuel tanks intended to extend the driving range of their electric function.
Leapmotor, a partner of Stellantis in China, also reported significant growth, having delivered close to 300,000 vehicles in 2024 and aims for 500,000 deliveries in the upcoming year.
Meanwhile, other Chinese electric vehicle manufacturers focusing solely on battery-powered models found themselves trailing in the delivery rankings for the year. Zeekr achieved sales of 222,123 units, Nio 221,970, and Xpeng 190,068 units.
These figures for Nio and Xpeng include the contributions from their budget-friendly brands, which commenced deliveries in the latter half of 2024.
Xpeng introduced its own hybrid range-extending system in November, while Zeekr announced plans to roll out its inaugural hybrid model in 2025.
Competition in the electric vehicle sector intensified in the past year, particularly with the entry of Xiaomi into the market, which launched its SU7 electric sedan in March. Xiaomi claimed that by year-end, it had delivered over 135,000 units, setting a delivery goal of 300,000 for 2025.
Zeekr also aims for increased deliveries, targeting 320,000 vehicles for 2025, following a slight shortfall from its stated 2024 goal of 230,000.
Surge in New Energy Vehicle Sales
The growth of electric vehicles in China reached a significant milestone in July, with new energy vehicles, which incorporate both battery-only and hybrid models, accounting for over half of all passenger vehicle sales for that month, as reported by the China Passenger Car Association. This positive trend continued into November, reflecting a penetration rate of 52.3%, up from a rate of 36% in July 2023.
Experts note that the continued incentivization for consumers in China to purchase new energy vehicles is a key factor behind this rapid growth. McCabe noted that the push serves to strengthen domestic manufacturers while decreasing reliance on foreign brands.
In urban centers like Beijing, policies have been introduced to facilitate easier access to license plates for new energy vehicles, further promoting their adoption over traditional fuel-powered cars. Recently, the government has also focused on subsidizing the purchase of new energy vehicles to stimulate consumption.
In the U.S., hybrids also saw a surge in sales, with combined penetration of hybrid and battery-electric vehicles reaching 18.7% in the second quarter, according to data from Wards Intelligence and the U.S. Energy Information Administration.
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